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Analysts forecast IT rebound next year

Market could begin to bounce back in 2010

Analysts said that a slow and deliberate recovery will begin next year

IT spending could begin to show solid signs of recovery by next year,
according to the latest figures from Gartner.

The analyst firm said that 2010 could see a rise in global IT spending of 3.3
per cent, marking the first gain since the financial crisis hit IT vendors
worldwide.

Gartner estimated that 2009 will see a total drop of 6.9 per cent for global
enterprise IT spending.

While the drop looks likely to be the worst yearly decline Gartner has ever
recorded, analysts said that a slow and deliberate recovery will begin next
year, with a return to pre-recession levels over the course of the next three
years.

"While the IT industry will return to growth in 2010, the market will not
recover to 2008 revenue levels before 2012," said Peter Sondergaard, a senior
vice president at Gartner and global head of research.

"2010 is about balancing the focus on cost, risk and growth. For more than 50
per cent of chief information officers, the IT budget will be zero per cent or
less in growth terms."

IT executives have also noticed encouraging signs which could signal the
beginning of a recovery. HP chief Mark Hurd said in September that he expects
the IT industry to
return
to growth in 2010, while Oracle EMEA head Loïc le Guisquet suggested last
week that the UK could
lead
much of the larger bounce-back in Europe.